COVID-19 Tax Update: CRA extends payment deadline and provides automatic relief of interest and penalties

The Canada Revenue Agency has updated its website which sets forth the extended payment deadlines for various entities as a result of COVID-19 (link).

Extended from September 1 to September 30, 2020 is the deadline for individuals, corporations and trusts to pay income taxes and income tax installments under Part I of the Income Tax Act (Canada) that became owing after March 18, 2020 – typically including liabilities relating to 2019. Penalties and interest will not be charged if payments are made by the extended deadline of September 30, 2020. This includes the standard late-filing penalty, as long as the related return is filed by September 30, 2020.

The CRA is also automatically waiving any arrears interest otherwise accruing on income tax debts related to individual, corporate and trust returns for the period April 1 to September 30, 2020, and in respect of GST/HST liabilities for the period April 1 to June 30, 2020.

Prepared by: Chris Marta

Chris Marta is an associate practising in the firm’s Vancouver office. Chris Marta’s practice focuses on domestic and international tax planning for individuals, trusts and corporations. He also represents taxpayers in their disputes with the Canada Revenue Agency. Prior to… more »